Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the fourth quarter and year-end 2012.
Plug Power is pleased to announce that for the full year 2012, expansion of our customer base in North America continued with new, first-time orders from Stihl, Mercedes Benz, Lowe’s, Carter’s and Ace Hardware. The Company also received additional orders for existing customers including Walmart, P&G, Coca-Cola, Sysco Foods, Wegmans, Kroger and BMW. Product shipments also increased reaching 1,391 units, a 36% growth from the previous year shipments.
Another 2012 success for Plug Power was completing the introduction of the new product platforms in the third quarter. The new platforms reduced material cost, a key driver for product margins, by an average of 30%.
As announced in the third quarter, the Company experienced a number of quality issues in 2012, which negatively impacted its financial performance. The quality issues have been technically addressed, and a majority of the changes have been implemented as of the end of the fourth quarter. As previously discussed, we believe the quality issues have caused our sales to be delayed by six to nine months, though the Company has been successful in maintaining customer loyalty. Increased costs and delayed sales forced the Company to adopt a restructuring plan in the fourth quarter to improve organizational efficiency and conserve working capital needed to support the growth of its GenDrive business. Additionally, to continue to support our stakeholders, by the direction of the board of directors, the Company continues to consider all strategic options to provide funding for the business plan. The options include raising additional capital, asset sales, strategic partnerships and a sale of the Company. In 2012, the Company engaged Stephens, its long-time investment banking firm, to assist with exploring and implementing these options.
“The main goal of the Company is to continue to build a successful market in material handling and expand into related applications such as refrigerated trucks, ground support equipment and range extending utility vehicles,” said Andy Marsh, CEO at Plug Power. “While the Company has experienced significant challenges in 2012, I believe the future of Plug Power is bright and that we are in the right market, with the right customers. We remain focused on the future.”
Net loss for the fourth quarter of 2012 and year ended December 31, 2012 was $8.5 million and $31.9 million, respectively. On a per share basis (basic and diluted), the loss for the quarter and the year was $0.22 and $0.93, respectively. This compares with a net loss of $7.2 million, or $0.32 per share (basic and diluted), for the fourth quarter of 2011 and net loss of $27.5 million, or $1.46 per share (basic and diluted) for the full year 2011.
Total revenue for the fourth quarter and year ended December 31, 2012 was $5.9 million and $26.1 million, respectively. This compares to total revenue of $11.9 million and $27.6 million for the same periods of 2011. Product and service revenue for the fourth quarter and year ended December 31, 2012 was $5.7 million and $24.4 million, respectively. This compares to $11.3 million and $23.2 million for the same periods of 2011. Research and development contract revenue for the quarter and year ended December 31, 2012 was $0.2 million and $1.7 million, respectively. This compares to $0.5 million and $3.9 million for the same periods of 2011.
Total cost of revenue for the fourth quarter of 2012 was $9.5 million, comprised of $9.1 million for cost of product and service revenue and $0.4 million for cost of research and development contract revenue. For the full year 2012, total cost of revenue was $40.5 million, comprised of $37.7 million for cost of product and service revenue and $2.8 million for cost of research and development contract revenue. Prior year comparable numbers for the fourth quarter were $12.2 million for total cost of revenue, comprised of $11.5 million for cost of product and service revenue and $0.7 million for cost of research and development contract revenue. Prior full year comparable numbers were $36.9 million for total cost of revenue, comprised of $30.7 million for cost of product and service revenue and $6.2 million for cost of research and development contract revenue.
Research and development expenses for the fourth quarter and year ended December 31, 2012 were $1.3 million and $5.4 million, respectively. This compares to the fourth quarter and year ended December 31, 2011 of $2.0 million and $5.7 million, respectively.
Selling, general and administrative (SG&A) expenses for the fourth quarter and year ended December 31, 2012 were $4.0 million and $14.6 million, respectively. This compares to SG&A expenses in the fourth quarter and year ended December 31, 2011 of $3.5 million and $14.5 million, respectively. Additionally, $0.6 million was expensed for amortization of intangible assets during the fourth quarter of 2012 and the fourth quarter of 2011. For the full year, $2.3 million was expensed for amortization of intangible assets for 2012 and 2011.
Cash and Liquidity
Net cash used in operating activities for the fourth quarter and year ended December 31, 2012 was $4.6 million and $20.2 million, respectively. On December 31, 2012, Plug Power had cash and cash equivalents of $9.4 million and net working capital of $6.9 million. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011.
The accompanying financial information and reconciliation tables provide additional information on the Company’s year-to-date performance as it relates to the full year 2012 milestones previously announced.
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company’s results for the 2012 fourth quarter and year-end results. Interested parties are invited to listen to the conference call by calling 877.407.8291.
The webcast can be accessed by going directly to the Plug Power Web site (www.plugpower.com) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.
The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power’s key accounts, including Walmart, Sysco and Coca-Cola. With more than 3,000 GenDrive units shipped to material handling customers, accumulating over 8 million hours of runtime, Plug Power manufactures tomorrow’s incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.
Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements including, but not limited to: the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that we expect we will need to raise additional capital to fund our operations and such capital may not be available to us; our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders; the risk that our continued failure to comply with NASDAQ’s listing standards may severely limit our ability to raise additional capital; the cost and timing of developing our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our GenDrive systems; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to improve system reliability for our GenDrive systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; and other risks and uncertainties discussed, but are not limited to, those set forth in (i) “Item IA-Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the Securities and Exchange Commission (“SEC”) on March 30, 2012 and (ii) in our quarterly report on Form 10-Q for the quarter ended June 30, 2012 filed with the SEC on August 14, 2012, as well as in the other reports we file from time to time with the SEC. We do not intend to, and undertake no duty to; update any forward-looking statements as a result of new information or future events.
Source: Plug Power
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